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BDO announces empowerment deal

8 March 2011

Accounting and consultancy firm BDO South Africa has announced that Kapela Holdings, a majority black-owned investment company, has purchased a 30% stake in BDO South Africa Advisory Services for an undisclosed sum.

BDO South Africa Advisory Services is the company through which BDO conducts all of its non-audit related assignments.

BDO South Africa chief executive John Spencer said the deal was the first of its kind in the accounting profession in the country, and marked a new era for the firm.

"The Kapela transaction greatly improves our black ownership and management credentials and through participative management they bring a wealth of knowledge and experience that will assist us in growing our non-audit services such as risk management, internal audit, tax and corporate finance," Spencer said in a statement this week.

"In addition we will have greater access to key markets outside the private sector."

Kapela Holdings chairman Israel Skosana said Kapela had a team of qualified people with extensive experience that actively got involved with their investees to add value.

"Our target companies are those with a high growth potential in sustainable industries, and BDO's advisory business is just that," he said. "In BDO we have found an organisation with strong leadership and a great skills base."

He added that while BDO had solid existing service offering, he believed that Kapela had a lot to offer and could assist in growing the business tremendously.

Quality, reputation, energy

As part of the transaction, Skosana and Fatima Abrahams will join the BDO executive committee, the highest decision-making body in the firm.

Skosana is a charered accountant and currently serves on a number of boards, including Old Mutual SA, Transnet and on the council of the University of Pretoria. Abrahams is currently a part-time senior professor at the University of the Western Cape, and sits on the boards of Foschini, Lewis Group and New Clicks.

"Having a firm with the quality, reputation and energy of Kapela join our team will ensure that we are well-positioned to meet our growth targets and offer greater services and expertise to our clients," said Spencer. "The added strength means greater capacity for us and our clients."

SAinfo reporter